Capital A Berhad · MYX:CAPITALA
Capital A Berhad — AirAsia Berhad — Q2 2011 Earnings Presentation
26 slides from Capital A Berhad's earnings presentation, Aug 23, 2011
Slide 1: Second Quarter 2011 Results
Second Quarter 2011 Results 23 August 2011
Slide 2: Disclaimer
Disclaimer Information contained in our presentation is intended solely for your reference. Such information is subject to change without notice, its accuracy is not guaranteed and it may not contain all material information concerning the Company. Neither we nor our advisors make any representation
Slide 3: 2Q11 Results – Key Highlights
2Q11 Results – Key Highlights Malaysia – Higher Passengers growth drives up revenue Profit before tax of RM145 mil up 1% y-o-y Operating profit of RM215 million down 3 % y-o-y Passenger volume grew by 15% y-o-y, achieving 81% load factor RASK (RM sen) up 6% despite tough fuel environment o
Slide 4: 2Q11 Results – Financial Results
2Q11 Results – Financial Results MAA TAA IAA RM’000 THB’000 IDR million 2Q11 2Q10 Change 2Q11 2Q10 Change 2Q11 2Q10 Change Revenue 1,075,622 933,402 15% 3,760,162 2,620,044 44% 895,254 653,988 37% EBITDAR 372,842 362,565 3% 990,591 678,650 46% 211,569 217,355 - 3% Operating Profit 214,803 222,557 -
Slide 5: 2Q11 Results – Operational Statistics
2Q11 Results – Operational Statistics Load Factor (%) 90% Weak Quarter Average Quarter Strong Quarter Strong Quarter Weak Quarter 85% 84% 82% 81% 81% 80% 80% 79% MAA = Mean 80% 80% 78% 78% 78% 77% TAA = Mean 79% 76% 76% IAA = Mean 78% 75% 75% 75% 70% 65% Q2-2010 Q3-2010 Q4-2010 Q1-2011 Q2-2011 MAA T
Slide 6: 2Q11 Results – Operational Statistics (RASK vs CASK)
2Q11 Results – Operational Statistics (RASK vs CASK) Weak Quarter Average Quarter Strong Quarter Strong Quarter Weak Quarter 7 2Q10 3Q10 4Q10 1Q11 2Q11 5.81 5.89 6 5.70 5.57 5.55 5.40 RASK & CASK 5.16 5.10 4.86 4.95 5 4.77 4.76 4.76 4.67 4.74 4.71 4.54 4.48 4.47 4.46 4.29 4.40 4.17 4.26 4.03 4.12 4.
Slide 7: 2Q11 Results – Operating Statistics (Highlights)
2Q11 Results – Operating Statistics (Highlights) MAA TAA IAA 2Q11 2Q10 Change 2Q11 2Q10 Change 2Q11 2Q10 Change Passengers 4,472,498 3,893,476 15% 1,614,853 1.237,952 30% 1,259,737 947,786 33% Carried Capacity 5,511,780 5,050,440 9% 2,063,160 1,651,192 25% 1,647,904 1,269,112 30% Load Factor 81% 77%
Slide 8: YTD'11 Results – Financial Results & Operating Statistics
YTD’ 11 Results – Financial Results & Operating Statistics MAA TAA IAA RM’000 THB’000 IDR million YTD’11 YTD’10 Change YTD’Q11 YTD’Q10 Change YTD’Q11 YTD’10 Change Revenue 2,123,564 1,804,007 18% 7,846,494 5,685,653 38% 1,670,099 1,217,490 37% EBITDAR 771,497 666,189 16% 2,506,893 1,662,072 51% 382,
Slide 9: CASK Breakdown
CASK Breakdown Cost / ASK (US cents) MAA TAA IAA 2Q11 2Q10 2Q11 2Q10 2Q11 2Q10 Staff Costs 0.57 0.47 0.55 0.50 0.51 0.36 Depreciation 0.74 0.68 0.03 0.05 0.03 0.03 Aircraft Fuel Expense 2.29 1.78 2.40 1.79 2.20 1.77 Aircraft Operating lease expense 0.08 0.10 0.97 0.94 0.85 0.82 Maintenance, Overhaul
Slide 10: 2Q11 Results – Ancillary Income
2Q11 Results – Ancillary Income 60 50 40 RM per pax 30 MAA 20 TAA IAA 10 0 Q1-2009 Q2-2009 Q3-2009 Q4-2009 Q1-2010 Q2-2010 Q3-2010 Q4-2010 Q1-2011 Q2-2011 MAA 29 27 36 25 38 43 45 49 51 50 TAA 19 20 19 18 28 31 34 28 36 40 IAA 25 23 31 27 37 45 39 52 52 49 Ancillary per pax growing in terms of reven
Slide 11: 2Q11 Results – Gearing Level
2Q11 Results – Gearing Level Net Debt & Net Gearing 7,000 3.50 6,800 6,600 6,400 2.60 2.62 6,200 2.25 2.27 2.02 Net Gearing 6,000 Net Debt 1.75 1.57 5,800 1.48 5,600 5,400 5,200 2Q2009 3Q2009 4Q2009 1Q2010 2Q2010 3Q2010 4Q2010 1Q2011 2Q2011 Gearing level reduced to 1.48 times from 2.27 times y-o-y
Slide 12: AirAsia Growth Story
Hr rsda.com AIRASIA GROWTH STORY
Slide 13: Forward Bookings
Forward Bookings Forward bookings in 2Q2011 remains strong. In September for MAA and IAA, slightly down y-o-y mainly due to Hari Raya holidays starting end August instead. Focus on optimizing load factor via revenue management (High peak, low peak, promotional fares) Malaysia Thailand 48% 43% 33
Slide 14: AirAsia's biggest order with Airbus
AirAsia’s biggest order with Airbus AirAsia Group has recently signed the biggest aircraft order with Airbus with an expected 200 Airbus A320 Neo A320 Neo is expected to deliver the following improvements:- 15% reduction in fuel consumption per aircraft Additional range of up to 500 nautical
Slide 15: Fleet Strategy
Fleet Strategy AirAsia Group has the biggest and youngest fleet among the LCC’s in the region of below 3 years 30 AirAsia Group has 95 24 24 24 aircraft spread across 12 25 23 21 hubs 20 20 20 19 18 18 17 284 (84 A320 & 200 A320 No of aircraft 15 Neo) more undelivered 15 14 13 aircraft to feed i
Slide 16: AirAsia Joint Ventures – Recognised model
AirAsia Joint Ventures – Recognised model 49% 49% 40% 40% 49% AirAsia Thailand AirAsia Indonesia AirAsia Philippines AirAsia Vietnam AirAsia Japan • Bangkok, Phuket, • Jakarta, Bandung, • Start Operations 4Q11 • Start Operations 1Q12 • Start Operations 3Q12 Chiang Mai as Hub Surabaya, Medan, and Bal
Slide 17: NEW Joint Venture - AirAsia Japan
NEW Joint Venture - AirAsia Japan Japan JV Target Launch March 2012 Narita, Tokyo as its first hub Partnering All Nippon Airways Flies to 76 domestic and international routes Network of 164 routes 228 aircraft 42 million passengers carried in 2010 USD 272 million Net income in 2010
Slide 18: Monetising Ancillary business
Monetising Ancillary business Overview of AirAsia Go / Expedia JV Launch in August JV will combine AirAsiaGo with Expedia-branded storefronts in Japan, India, and ASEAN - - AirAsia will contribute AA and AAX inventory and commission from ancillary sales - - Expedia, Inc. will also contribute: ho
Slide 19: AirAsia an ASEAN Airline – Asean office
AirAsia an ASEAN Airline – Asean office • Regional branding • Truly ASEAN airline and company • Home grown, world class Key Strategies of ASEAN office Team to position AirAsia as more than an ASEAN airline but also as an ASEAN company Team to spearhead ASEAN initiatives in AirAsia and promote th
Slide 20: Malaysia – Regional leader in aviation Industry
Malaysia – Regional leader in aviation Industry AirAsia & MAS Collaboration KEY BENEFITS from collaboration for AirAsia • AirAsia to continue focusing on its core competencies of its LCC business with the Tony Fernandes as Group CEO and Kamarudin Meranun as Deputy Group CEO • Support from Government
Slide 21: Key Strategies for AirAsia Group
Key Strategies for AirAsia Group MALAYSIA Focus on building domestic market and strengthen other hubs Add more frequencies on key domestic east Malaysia and trunk international routes Focus on shorter routes – less than 3 hours THAILAND Building domestic market which is very profitable for T
Slide 22: Our Vision
Our Vision AirAsia is already a regional leader in the LCC space • Expanding the AirAsia Brand and model to other regions • To have unparalleled network via JV model and hubs structure AirAsia will continue to be an independent run airline in Malaysia and the region The management and the team
Slide 23: Thank You
Thank You 22
Slide 24: Appendix
Appendix fir foiaws
Slide 25: Accounting for TAA and IAA
Accounting for TAA and IAA Overview AirAsia has investments of 48.9% in both TAA and IAA The aviation laws of Thailand and Indonesia require foreign shareholdings to not exceed 50% interest in these entities Based on the shareholders’ agreements for these entities, TAA is considered to be a jo
Slide 26: Accounting for TAA and IAA (continued)
Accounting for TAA and IAA (continued) Equity Accounting The equity method is a method of accounting whereby the investment is initially recognised at cost and adjusted thereafter for the post-acquisition change in the investor’s share of net assets of the investee. The profit or loss of the inves